Tom Barry (Cork East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

352. To ask the Minister for Public Expenditure and Reform his Department's policy regarding rates on properties utilised by charities (details supplied) which are registered charities; and if it is Government policy that these charities can avail of rate exemptions in view of the fact that they are voluntary, community organisations and their whole ethos is to provide support and benefits to the community. [41017/14]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The Valuation Act, 2001 provides that all buildings used or developed for any purpose are rateable unless expressly exempted under Schedule 4 of the Act. The Commissioner of Valuation is independent in the performance of his functions under the Act and the making of valuations is his sole prerogative and I, as Minister, have no role in decisions in this regard.

The current position under the Valuation Act regarding claims for exemption on charitable grounds is that in order for a property occupied by an organisation to be exempt from rates under the terms of Schedule 4 - paragraph 16 of the Act, that organisation must be a charitable organisation that uses the land, buildings or part exclusively for charitable purposes and otherwise than for private profit. The organisation claiming charitable status for the purpose of qualifying for exemption from rates must satisfy the definition of "charitable organisation" in section 3 of the Valuation Act, 2001.

Notwithstanding the form of wording used by the organisation in its Constitution, Deed of Trust, Memorandum of Association or Articles of Association in relation to its object or objects, the determining factor on which exemption is granted is the Commissioner of Valuation's satisfaction that the property is occupied by a charitable organisation and is used exclusively for charitable purposes and otherwise than for private profit as stated in the Act.

However, as regards the registered charities to which the Deputy refers, the Valuation (Amendment) (No.2) Bill, 2012  contains a number of streamlining measures, one of which is a proposal to change the meaning of "charitable organisation" as defined in section 3 of the Valuation Act, 2001 to mean a charitable organisation within the meaning of section 2 of the Charities Act, 2009 that is entered in the register of charitable organisations pursuant to Part 3 of that Act.  If this measure is enacted, then the effect will be that all properties occupied by registered charities under the Charities Act, 2009 and used for charitable purposes will be eligible for exemption from rates. The Bill is currently  scheduled for  Report Stage in the Seanad on 20th November.